summary

Performance planning includes result and behaviors as well as a development plan. Results is the expectations or the outcomes that the organization is aiming for. Performance standards are also important because they provide information about acceptable and unacceptable performance, so that employees can be evaluated on how well they have achieved their goals. Behaviors is measured through competencies, which determines the results.

Performance execution comes after the planning. Employees need to commit to the established goals. Feedback and coaching should be ongoing and continues through the process. One way to help with feedback and coaching is to collect and share performance data, and be prepared with performance reviews. Employers need to observe and document performance on a daily basis. Employers should also provide employees with resources and opportunities, and reinforce employees’ outstanding performance.

Performance review should focus on the past, present, and future. It is necessary to know what has been done and how, what compensation is received or denied as results, and goals in the future. There are six steps help with conducting productive performance reviews as follows: Identify strength and weakness of employee’s behaviors, give feedback about these behaviors, the importance of changing these behaviors. The Supervisor and employee must agree on the action plan, and set up follow- up meetings. Performance renewal and recontracting is similar with performance planning; however, it is based from previous phases, and performance management cycle restarts after this process.

After the lecture on performance management process, a class activity helped to grasp the concepts and apply them in practice. Omega Inc. lacked all of the management process. They must have a job description before performance planning. It also lacked goals, feedback and standard appraisal, so it is important to set formal meetings and set up goals. If the needs are not met, it is important to change the goals at the stage of renewal and recontracting.

The presentation on chapter three gives a general idea about performance management and strategic planning. The first article demonstrates both employees and organizations need to have mission, vision, goals and strategies to improve performance, and must clearly align and be congruent based on organizations and unit level. The second article demonstrates that the employee needs to understand their key accountabilities or their responsibility to meet the organization’s goals. Supervisors and employees need to agree on the areas of the development plan and must set goals before implementation. The third article is about how strategic performance implementation issues affect strategic performance management. There are three important factors: development of information architecture, alignment with incentives, and mission, vision, and goals. These factors determine the effectiveness of strategic performance management in Indian Oil Industry.

Chapter three explains that Strategic planning is linked with performance management. The purpose for strategic planning is to help organizations in pursuit of its goals. The main point is to identify external (opportunities and threats) and internal (strengths and weakness) trends. The internal can be organizational structure, and processes. External are based on economic, and technological. An opportunity plus strength is called leverage, opportunity with weakness is called constraint, threat plus strength is vulnerability, threat and weakness is called problem.

Both employees and organizations need to have mission, vision, goals and strategies to improve performance, and must clearly align and be congruent based on organizations and unit level. Job description, behaviors and results are also crucial. Mission statement includes the technology that is used in productivity and the benefits of the products and services. A good vision must be brief, verifiable, bound by a timeline, current, focused, understandable, inspiring, and stretch. Goals provide specific implements to achieve mission and vision. The strategies are growth, survival, turnaround, stability, innovation, and leadership.

In conclusion, the key component is to understand the activities, tasks products, services, and processes of the job. Evaluations cannot be done without these criteria. Also, knowledge of the job is necessary as well before the implement of performance management system. It is important to update goals, objectives, and accountabilities as well as feedback toward these standards. Recontracting is an ongoing process. Poor implement can affect the whole system, so that links between each component must be clear. Then, moving to Strategic planning, the purpose is to help both organizations and employees achieve goals through effective approaches. It helps employees to adapt to environmental change, guide them directly in daily basis, and even to build better allocation of resources on the organizational levels. A mission statement should include organizational values and beliefs. Vision is also an important component, which includes the future aspirations. Identifying strategies that help achieve goals is crucial too. Have an understanding of “what’s in it for me?” helps carry out the understanding of the system.